Business diversification and a positive impact

Published
by Ethan Bilby on 09 February 2018

The activity level has not only been high in A.P. Moller - Maersk in the passing year. A rapidly changing world and the need for more focused and agile companies have meant that also A.P. Moller Holding, A.P. Moller - Maersk’s largest shareholder, needs to keep a high pace.

The A.P. Moller Foundation deed states that the companies should be run in the spirit of A.P. Møller, the founding father, pictured.

A.P. Moller Holding, the investment arm of A.P. Møller og Hustru Chastine Mc-Kinney Møllers Fond til almene Formaal (The A.P. Moller Foundation), moved to new offices in 2017 and established an organisation reflecting the growing portfolio of businesses.

Established in 2013, A.P. Moller Holding’s role is to safeguard the long-term viability of the core businesses in which the Foundation has significant holdings, most notably A.P. Moller - Maersk and Danske Bank, and to ensure a continued diversified portfolio in order that the company can withstand unexpected developments in its core holdings. In addition, A.P. Moller Holding is to invest in and build value creating businesses that have a positive impact on society.

“Our holding company has been established to support our core holdings, while also providing the financial means to the A.P. Moller Foundation’s donations, for generations to come. This means our time horizon is many years. We do this by trying to safeguard the long-term viability of our current portfolio and by investing in and building new businesses,” says Robert Maersk Uggla, CEO of A.P. Moller Holding.

Supporting A.P. Moller - Maersk and Danske Bank

The Foundation’s 51% shareholding in A.P. Moller - Maersk was transferred to A.P. Moller Holding when the latter was established at the end of 2013. In 2015, A.P. Moller Holding also became a 20% shareholder in Danske Bank, when A.P. Moller - Maersk decided to exit its shareholding in the leading Scandinavian bank to further focus its business on fewer activities.

The Core Values, articulated by A.P. Møller’s son Mærsk Mc-Kinney Møller, pictured, provide important direction in the running of the companies

“As A.P. Moller - Maersk is consolidating and focusing on transport, logistics and ports, we believe it is paramount to secure the continued diversification of the A.P. Moller Holding portfolio with involvement in several industries. This reduces the risks and ensures the long-term viability of our role as a reliable shareholder,” says Robert Maersk Uggla, and continues:

“At the same time, A.P. Moller – Maersk has the opportunity to become a more focused and agile company, with a management team and Board having more time to spend on transportation related topics. We believe this is necessary in a rapidly changing world, where many of our legacy industries are being disrupted by new competitors.”

Name and values

With the long-term focus, a key criterion in the transition is to safeguard the Maersk heritage, name and values. The Core Values are closely associated with the Maersk family name, and the family’s and Foundation’s ownership of the various Maersk companies, including A.P. Moller Holding, A.P. Moller - Maersk, Maersk Broker and Maersk Tankers.

“The A.P. Moller Foundation deed states that our companies should be run in the spirit of A.P. Møller, our founding father. The Core Values, articulated by A.P. Møller’s son Mærsk Mc-Kinney Møller, provide important direction in this respect,” says Robert Maersk Uggla.

The deed also states that investments should be in ‘nyttig virksomhed’, i.e. companies having a positive impact on society. This is also at the heart of A.P. Moller Holding’s newest investment, the Africa Infrastructure Fund focusing on African infrastructure investments within transportation and power. The purpose is twofold; to deliver attractive risk-adjusted returns, and to support Africa’s much-needed, long-term development.